Market kills CyberSecurity Buzz!

The last couple of years, we've been witnessing a rather solid increase in the number of initiatives to produce Cyber Security solutions.

Cyber attacks have evolved from sporadic malicious attacks trying to steal pieces of business information to targeted attacks capable of causing actual physical damage to crucial infrastructure.

Many companies, from the largest ones to small and fresh start-ups, have been trying to 'ride the wave' and come up with innovative ways to fight Cyber-Crime.

Although, threats substantially increased and have only become more elaborated and sophisticated, something Killed the Buzz.

The last couple of months the market voted with its feet and left the publicly traded CyberSecurity companies' shares crashed and bleeding.

FireEye

FireEye, Inc. provides products and services for detecting, preventing, and resolving advanced cyber security threats. Its products comprise threat prevention system that provides threat protection from network to endpoint for inbound and outbound network traffic, such as Web threat prevention appliances to analyze all Web traffic; email threat prevention appliances that detect and stop advanced attacks; and file threat prevention appliances, which analyze network file servers to detect and quarantine malicious software. The company’s products also include central management appliances that manage threat prevention system; forensic analysis system, which executes and inspects malware, zero-day, and other advanced cyber attacks; and endpoint threat prevention systems that detect, analyze, and resolve security incidents.

Dropped from $90 to $30 in Six Months.

Imperva

Imperva, Inc. develops, markets, sells, services, and supports data center security solutions that protect high value applications and data assets in physical and virtual data centers. The company operates in two segments, Imperva and Incapsula. Its SecureSphere platform provides database, file, and Web application security in various data centers, including on-premise data centers, as well as private, public, and hybrid cloud computing environments. The company also offers cloud-based services, such as Web application firewall (WAF), content delivery optimization, distributed denial of service (DDoS) attack prevention, and load balancing services. In addition, it provides DDos Protection Service for SecureSphere, a cloud-based security service that safeguards businesses from the DDoS attacks; ThreatRadar Reputation Services, a subscription service that recognizes attack sources and adjusts Web security policies;

Dropped from $65 to $30 in Six Months.

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In a reversal of fortune, old school Information Security companies, saw their shares rise and bloom.

These companies manufacture old school security products such as Firewalls, Intrusion prevention systems, Data Leakage Protections systems, Identity Management systems and so on.

CheckPoint

Check Point Software Technologies Ltd. develops, markets, and supports a range of software, combined hardware, and software products and services for information technology (IT) security worldwide. The company provides network security gateway software blades and appliances that enable its customers to implement their security policies on network traffic between internal networks and the Internet, as well as between internal networks and private networks that are shared with partners; and endpoint security solutions, which provide various software blades that run on individual computers connected to the network, such as desktop and laptop computers, as well as other mobile devices.

Rose from $60 to $68 in the last 8 months.

Vasco Data Security

VASCO Data Security International, Inc., together with its subsidiaries, designs, develops, and markets security systems to secure and manage access to user digital assets worldwide. The company offers VACMAN, a host system authentication platform that combines technologies in one unique platform; IDENTIKEY Authentication Server that adds server functionality to the VACMAN core authentication platform; DIGIPASS for APPS, a client platform for mobile applications; DIGIPASS clients, a suite of approximately 50 multi-application client e-signature software products; and DIGIPASS as a Service and MYDIGIPASS.COM, an cloud-based authentication services platform, which offers secure access to multiple online and in-the-cloud applications to enterprise employees, businesses, and consumers. It also provides IDENTIKEY Appliance, an authentication solution that offers two-factor authentication for remote access to a corporate network or to Web-based in-house business applications;

Rose from $8 to $14.5 in the last 5 months.

This trend was also accompanied by poor financial results from the CyberSecurity companies vs. really good results from the old school Information Security companies.

Currently and from in-depth knowledge of the market, I can relate to this trend; As CISOs and Information Security professionals find it much easier and feel safer to explain to management, on old school threats, rather than trying to materialize Cyber-Crime to actual threats.

But,

I can also predict that because Cyber-Crime is not going anywhere, is here to stay and do much more damage, CyberSecurity initiatives will successfully Buzz again.